FILE - In this Sept. 9, 2015 file photo, Devlin D'Zmura, a tending news manager at DraftKings, a daily fantasy sports company, works on his laptop at the company's offices in Boston. Customers of the two biggest daily fantasy sports websites have filed at least four lawsuits against the sites in Oct. 2015, following cheating allegations and a probe into the largely-unregulated multi-billion dollar industry. In court papers, the customers accused the DraftKings and FanDuel sites of cheating, and argued they never would have played had they known employees with insider knowledge were playing on rival sites.

FanDuel and its rival DraftKings have been under scrutiny after accusations surfaced of employees participating in the contests with insider information. An employee recently finished second in a contest on FanDuel, winning $350,000. Nevada recently banned the sites.

CHICAGO, IL - OCTOBER 16: The fantasy sports website DraftKings is shown on October 16, 2015 in Chicago, Illinois. DraftKings and its rival FanDuel have been under scrutiny after accusations surfaced of employees participating in the contests with insider information. An employee recently finished second in a contest on FanDuel, winning $350,000. Nevada recently banned the sites. (Photo illustration by Scott Olson/Getty Images)

And gaming regulators in the gaming capital of the U.S. on Thursday staked their claim against fantasy sports leagues, ruling that outfits like FanDuel and DraftKings need a state license to operate in Nevada — just like casinos.

Colorado casinos hope gaming officials here follow Nevada’s lead.

“We do think they should be regulated,” said Lois Rice, executive director of the Colorado Gaming Association, which represents casinos in the state’s three gambling towns, Black Hawk, Central City and Cripple Creek. The association plans to discuss the issue and possibly craft a formal position at a meeting next week.

Daily fantasy sports websites — there are at least 22 out there now — are collecting money and paying out prizes that can reach $1 million. DraftKings and FanDuel, the heaviest hitters in leagues that count as many as 57 million U.S. players this year, are valued at more than $1 billion each. Inc. magazine recently said fantasy sports leagues are the third-most-profitable industry in the country.

New Jersey’s casinos this week saw their three-year push to expand gambling into sports events revived when a federal appeals court decision vacated a lower court’s ruling nixing a state law allowing sports betting in casinos. A New Jersey congressman and senator last month called for a congressional hearing to examine fantasy sports leagues, arguing the websites are shirking federal bans on online gambling.

The appetite for sports betting is huge right now. But fantasy sports advocates labor to differentiate their games from gambling. By studying players, statistics and team reports, fantasy sports league players, they argue, they are playing a game of skill, not chance.

Casinos don’t want to shut down fantasy sports leagues; they want a piece of the action, said Chris Moyer, spokesman for the American Gaming Association, which represents the $240 billion casino industry. “Many of our companies would like to offer the product.”

But before risking their licenses, the casinos need legal clarity, like the Nevada board’s decision to license.

“The views of regulators in various states are very important in determining what could happen,” Moyer said. “But we think daily fantasy sports taps into a potential new customer base for casinos so it’s in our interest to find a way to work with these companies to attract new customers to our casinos.”

Since fantasy sports games are specifically exempted from prohibitions in the federal Unlawful Internet Gambling Enforcement Act, “the legality of fantasy sports activity would need to be evaluated on a case by case basis by an agency having jurisdiction,” state revenue department spokeswoman Ro Silva said.

“The Colorado Division of Gaming does not have the authority to regulate fantasy sports games,” Silva said.

Just like Nevada and New Jersey approved online gambling in casinos as a way to boost tax revenue, states could embrace fantasy sports inside casinos, Rice said.

“There’s a feeling that states should be able to benefit from tax revenue that could be generated from fantasy sports games,” Rice said. “They aren’t paying any taxes right now.”

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